Audubon County Republican. [volume] (Audubon, Audubon Co., Iowa) 1885-1894, 1887-12-08
THE REVENUES.
President Cleveland DevOtes His
Message Largely to a Dis
cussion of this Subject.
He Also >evOfcs Considerable
Space 20 the Tariff Laws,
But the Message is
IBriefand Concise.
Its Brevlty Win Insure Its General
Pcrusal.

| To the Congress Of the United States.
You are confronted at the Threshold Of you,
| legislative duties with condition Of the nation
| al finances which imperatvely demands i'm
mediate and careful consideration. The amount
| OF money annually received, through the oper
alton OF present laws, from the industries and
necessities OF the people, largely exceeds the
sum necessary TO meet the expenses OF The
| government. When we consider that tht
| theory OF our institutions guarantees to every
| citizen the full enjoyment OF the fruits OF his
industry and enterprise with only such deduc
| tons as may be his share toward the care
| full and economical maintenance of government
which protects him, It is plain that the exactior
OF more than this is indefenslble and culpablt
| betrayal of fairness and justice.
This wrong inflicted upon those who bear the
burden of national taxation, like other wrong.
| multlplics a brood of evil consequences. Thu
| public treasury, which should only exist as
conduit, conveying the peoples tribute TO It's
Legitimate objects of expenditures, becomes q
| boarding place for money needlessly with Drawn
from trade and the peoples use, thus crippline
! out national energies, usurping our country's
| development, preventing Investments Ia pro.
| ductlvc enterprises, threatening financial dis.
| turbancc and inviting schemes Of public plum.
| der.
This condition Of our treasury is not altogeth.
| er new, and II has more than once OF late been
| submitted to the peoples representatives In
and yet the situation still continues with ar
gravatcd incidents more than ever prcsaging
financial convulsion and widespread disaster.
IL will not do to neglect this situation because
It's dangers are not now palpably imminent and
| apparent. They exist none the less certainly
and the unforeseen and unexpected occasion
when suddenly they will be preciptated upon
us. On the Both Of June, iSs5, the excess of
revenue over public expenditures after com
plying with the annual requirement OF the
sinking fund act, was Sl1, $50 735 81 /;
during the year ended June 80, 1886, such ex-
cess amounted to $40, 405,5 20; and during
the year ended June 80, 1887, 1t reached the
| sum of S55, 567, Si9.5i. The annual contrbu-
,lons to the sinking fund during the three
years above specified, amounting In the aggre-
gate to Sl3S, 05S, S20.9I, and deducting from
the surplus as stated were made by calling In
for that purpose outstanding three per cent.
bonds OF the government. During the six
months prior to June 30, 1887 the surplus
revenue had grown so large 10y repeated accu-
| mutations that IL was feared the withdrawal
OF this great sum OF money needed By the
people would so affect the business Of the
country, that the sum of so, S6i, 100 OF such
surplus was applied 10 the payment of the
principal and interest OF the three per cent.
bouds still outstanding and which were then
payable ut the option Of the goycl nment
The prccarious condition Of financial affairs
among the people still needing relief, immC-
ulhiCiD hlltT Tue oi juno, 1881, the re-
mainder Of the three per cent. bonds then out
standing, amounting with principal aud inter
est to the sum of SlS,ST7, 500, were called IN
and applied to the sinking fund contribution
for the current fiscal year. Notwithstanding
these operations of the treasury department.
representations OF distress In business circles
not only continued hut increased, and ALSO
lutte peril seemed at hand. In these circuIn-
stances, the contribution to the sinking fund
Tor the current fiscal year was at once com
plcted by the expenditure OF s2I,6S2, 2S355 In
the purchase of government bonds not vet due
bearing -four aud four and bali per cent.
Interest the premium paid thereon averaging
about twcnty.four per cent for the former and
eight per cent. for the latter. In addition 10
this the Interest account accruing during the
current year upon the outstanding bonded in
dcbtcdncss OF the government was to some eX-
tent anticipated and banks selected as dtposi-
tories OF public money were permitted to some
what increase their deposits. While the ex-
pedicnts thus employed to release to the peo-
pie the money lying In the treasury served to
avert immediate danger, our surplus revenues
have continued to accumulate, the excess for
the present year amounting on the first day OF
December to S55, 25S S7l 70 and estimated 10
reach the sum Of sIl3,0O0,000 on the 30th Of
June next, at which date ii is expected that
this sum, added to The prior accumulations,
will swell the surplus In the treasury to Sli0,
O1O,0D. There seems to be no assurance that
pies circulating medium, our business com
munity may not in the near future be sub
iccted 10 the same distress which was quite
lately produced from the same cause. And
while the functions Of our national treasury
should be few and simple, aud while its best
condition would he reached, | believe by its
entire disconncction with the private business
interests, yet when by pervcrson Of its pur-
pOscs II idly holds money uselessly substracted
from the channels of trade, there seems to be
reason for the claim that legitimate means
should be devised by the government to re-
store In an emergency without waste or OK
travagancc such money to its place among the
people. II such an emergency arises, there
now exists no clear and undoubtcd executive
power Of relief. Heretofore the redemption Of
the three per cents only which were payable at
the option OF the government, has afforded q
means for the disbursement OF tho excess Of
our revenues; hut these bonds have all been
retired, aud there are no bonds outstanding
the payment of which we have the right to IN
siSt upon. The contribution to the sinking
fund which furnishes the occasion for expen-
diturcs in the purchase of bonds has been al
ready made for the current year. so there Is
no outlet In that direction.
In the present state of legislation, the only
pretcnsc OF any existing executive power TO re-
store, at this time, any part of our surplus rev.
enues to the people by its expenditure consists
In the supposition that the Secretary Of the
Treasury may enter the market aud purchase
the bonds Of the government not yet due, at a
rate of premium 10 be agreed upon. The only
provision of law from which such power could
be derived Is found IN an appropriation bill
passed a number of Years ago and it Is subject
to the suppositon that IL was intended as tenn
porary and limited in its application instead of
comforting continuing discretion and author
ity, No condition ought TO exist which would
justify the grant OF power to single official
upon his judgment as to its necessity, to with
hold from or release to the business of the poo
plein an unusual manner money held in the
treasury, aud thus affect at his will the liuan-
cal situation Of the country; and II IL Is deem
ed wise to lodge In the Secretary OF Treasury
the authority IN the present iuncturc to pir-
chase bonds, IL should be plainly vested and
provided as far as possible with such checks
and limitations as will define his official right
aud discretion and az the same time relieve
him from undue responsibility. In consider
ing the question OF purchasing bonds
as means OF restoring to circulation
the surplus money accommodating In
the treasury Il should be borne in mind that
premiums must Of course be paid upon such
purchase, that there may he large part OF
these bonds held US Investments which cannot
be purchased nj any price and that combi
nations among holders who are willing to sell,
may unreasonably enhance the cost of such
bonds to the government. 1t has been sug-
gcsted that the present bonded debt might be
ference between the olda and new securities paid
In cash, thus ilndng use for the surplus in the
treasury. The success Of this plan. It is mp
parent must be founded upon the yolition OF
the holders OF the present bonds; and 1t Is
not entirely certain that the Inducements
TO be offered them would result In more
financial benefit TO the government than the
purchase Of bonds, while the latter proposition
would reduce the principal OF the debt by
actual payment, Instead of extending 1t. The
proposition to deposit the money held by the
government In banks throughout the country
for use by the people, is, II seems TO me exceed
ingly objectionable In principle as reaching too
close relationship between the operations Of
the government and the business OF the coun-
try aud too extensive a commingling OF their
money, thus fostering an unnatural reliance In
private business upon public funds II this
scheme should be adopted, 1t should only be
done as temporary expedient TO meet an ur-
gent need Legislative and executive effort
shOull Generally be In the onnosife direction